Bitcoin Dominance Rises Amid Narrowing Market Structure

According to Odaily, Wintermute has noted on the X platform that as the holiday season approaches, the market structure is narrowing, leading to an increase in Bitcoin's dominance. The oversupply and intensive token unlocking schedules have resulted in the continued underperformance of altcoins. Internal liquidity data indicates that there is buying pressure on major cryptocurrencies, with institutional funds consistently purchasing since the summer, while retail investors are shifting from altcoins back to mainstream cryptocurrencies. Despite spot buyers providing a stable foundation for the market, price discovery is still occurring through derivatives. This has resulted in a coexistence of net buying of major cryptocurrencies and intraday sharp declines triggered by leveraged position liquidations. Additionally, traditional financial institutions are steadily entering the crypto space, which is expected to support mid-term prices. In the short term, the market is expected to remain volatile due to thin liquidity, with Bitcoin (BTC) and Ethereum (ETH) continuing to act as primary risk absorbers.